Karnalyte Resources Inc. CEO denies allegations, says the company strives to put shareholders best interest “at the forefront of everything.”
Down the hall they marched and into the conference room at the Hampton Inn near Saskatoon’s airport, four armed city police officers acting as a security detail for the board of directors of a small Saskatchewan mining company called Karnalyte Resources Inc.
It was June 7, 2018, and Karnalyte’s annual general meeting was about to start. A handful of frustrated investors hoped to dethrone the board they believed was mismanaging the company. Including the police and the company’s board members, there were maybe 30 people in the room, 40 tops.
“I just remember thinking ‘What in the world is going on here?’” said Tom Villeneuve, a significant Karnalyte shareholder who was in the audience. By calling in the police, Villeneuve and the other angry shareholders sensed the company was prepared for a battle, figuratively and literally, if necessary.
But the real fight took shape in the weeks and months after Karnalyte’s pivotal 2018 AGM when some shareholders began to claim the vote for the board of directors was rigged. They say their votes, submitted electronically, were changed. And, they say they have the evidence to prove it.